Chris Leggett, the former president/CEO of First Coast Community Credit Union, has agreed to settle a regulatory dispute involving a real estate transaction with family members.
According to a June 26, 2009 hearing petition with the Florida Office of Financial Regulation Division of Financial Institutions on Oct. 28, 2005, Leggett bought a Georgia home owned by his brother and sister-in-law for $435,000. He paid an $87,000 down payment and obtained a bank loan for the balance. By February 2006, the family members had paid off the down payment and proceeds from the home's sale paid off the mortgage. They would later lease the property from Leggett, which was then transferred to the sister-in-law with Leggett's name remaining on the mortgage. The sister-in-law applied to $70 million First Coast in Palatka, Fla. for financing. Leggett contended he was not involved in the financing or approval of the loan.
The OFR said Leggett "improperly and illegally" engaged in an insider real estate transaction that ultimately resulted in a financial loss to First Coast. On Dec. 29, Leggett agreed to a consent agreement "to avoid the time and expense" of further proceedings "without admitting or denying that such grounds exist," according to the final order.
Leggett also agreed to resign from any Florida financial institution affiliated party including subsidiaries, affiliates or service corporations. Leggett, who served as president/CEO of First Coast from November 2003 to Oct. 1, 2007, became president/CEO of Marietta, Ga.-based $770 million LGE Community Federal in Credit Union in 2008.